Arthur Wightman, PwC Bermuda territory leader, warned on Monday that Bermuda must act now to ensure long-term fiscal and social stability, starting with tax reform and healthcare.

Speaking at the Chamber of Commerce’s annual Budget Breakfast, Mr Wightman said the new corporate income tax brings both opportunity and risk.

The Government projects $187.5 million in revenue from the corporate income tax for the 2025-26 fiscal year. However, the Fiscal Responsibility Panel advised that most of this revenue should be held in a suspense account until final tax returns are submitted in late 2026, to ensure fiscal stability amid potential revenue fluctuations.

The Government’s Pre-Budget Report said that proceeds from the CIT “will allocate $50 million to launch universal healthcare, improving hospital services and expanding access to preventive and specialist care”.

Mr Wightman pointed to the growing strain on Bermuda’s healthcare system. “There are members of the population who are not insured or underinsured,” he said. “The ageing and unwell within the population are swelling as a relative proportion of the overall population, placing pressure on the system.”

He said that as a small island, Bermuda faces an uphill battle balancing sustainability with universal access.

The Non-profit Alliance of Bermuda has called for stronger investment in the social sector to address health disparities, citing estimates that between 17 per cent and 33 per cent of the island's population live in poverty and pointing to large health disparities among high and low-income populations.

The work of the Tax Reform Commission is important, Mr Wightman said, noting that the commission, which was re-formed last year after delivering its report in 2018, will likely advise the Government on how to manage variable revenues tied to the profits of the reinsurance companies that pay the CIT.

“It will most likely make recommendations in relation to debt repayment, a stabilisation fund and also look at the existing system of taxes to see where the cost of doing business could be addressed via reducing or eliminating certain local taxes.”

Mr Wightman further warned that Bermuda, like the rest of the world, faced disruption on many fronts, from artificial intelligence and climate change to global tariffs and shifting trade alliances.

He pointed to PwC’s “Value in Motion” analysis, which found that $7.1 trillion in global revenues is expected to shift between companies in 2025. “The pressure for businesses to reinvent is at some of the highest levels seen in the last 25 years.”

Closer to home, Mr Wightman stressed the need for continued collaboration between the Government and the private sector.

“In Bermuda, the interrelationship between business, Government, the economy and the country overall could not be more marked,” he said. “Events like the chamber’s annual budget discussion are crucial for helping business leaders navigate what’s next.”